peterfdrucker (June 19, 2009 at 7:02 pm)

There's a pretty interesting article from about 14 years ago, that, I think, sums up a lot of the problems w/ GDP quite well. It also provides a few words on the history of GDP, and the transition from GNP to GDP mentioned by Stiglitz. Check it out, "If the GDP is Up, Why is America Down?" by Clifford Cobb, Ted Halstead, and Jonathan Rowe. It's available at the Atlantic Online.

Stormwern (May 19, 2009 at 9:21 am)

Another matter is the number of transactions. In a socialist state, the government pays doctors for example. In america it's employer ->(employee ->) HMO ->hospital ->doctor. Four times the transactions means four times the GDP. The military industrial complex is structured the same way.

Zeldovich (May 13, 2009 at 7:34 am)

He could have added that sometimes building houses that no one can afford with cheap money that puts an upward pressure on asset prices is counted as economic growth in GDP, when it is in fact the opposite. It's all just wasted money. GDP hid our phony economy, in which liabiities and waste were considered assets resulting from increased productivity.

golfprobro4eagles (May 4, 2009 at 3:36 pm)

Some day when 3/4 of the world is dust they will find Michael Hudson, Jim Rogers, Joseph Stiglitz, Marc Faber, Peter Schiff and ask how we were so misled by our leaders. Maybe they will listen? God Help us

archdeaconj (April 27, 2009 at 11:40 am)

If you take an index based on 'desirable goods and services', instead of GDP, you find that since about the mid eighties it has been in decline. This is puzzling. Why, when more of us are working longer, harder, and more efficiently, and when new technology has replaced much drudge, is the average standard of living going down?

floopy312 (April 16, 2009 at 7:03 am)

The land where the forest was has not such a value, because it is not within a city or near a city, it is only valuable for farms but not for schools, homes etc. because u dont want to have ur home in the middle of the jungle, u want ur home near services and jobs that only a city can provide you, that is why your house land cost more than a bigger land within a farm.The big question here is: what do we need more, FOOD or WOOD? Then we could choose between a farm or a forest.

krigath (April 5, 2009 at 5:00 am)

decent video on the economy and development, although the guy does stumble a bit. Of course development does not wholly depend on the growth in GDP though

Cruciblious (March 22, 2009 at 12:31 am)

Excellent video.

infokemp (March 10, 2009 at 8:27 pm)

The problem with the US is that the anti gun laws mean there are only criminals with guns on the streets, there are too many armed young men at home or in prison and too few in the armed forces. If you have 2 million wasted lives in prison thats a symptom of failed education and social policy.The US will need 5 million service men if Pakistan goes up, (does the US army want to recruit prisoners no, they are ill suited to military life but they may have to recruit prisoners) where's man power

chaniwie (February 11, 2009 at 2:15 am)

yeah!

bajawind (February 10, 2009 at 11:14 pm)

the US spends more on prisons than on education--well done. fall out from the drug war--great for thugs with guns (here and abroad, Columbia, Mexico Afghanistan) bad for everyone else.

kakelly17 (February 8, 2009 at 8:50 pm)

He makes some very valid points, however, the forest example is flawed. When someone chops down a forest it does not leave "nothing there". The land where the forest was is a scarce resource which has an alternative use. That alternative use could be: to grow crops, to graze cattle, to build a ski slope, to build a home, to build a school, to build a hospital, to build a park, and hundreds of other alternatives which make the people of the country better off.